State and Local Incentives

Indiana State Incentives

Indiana High-Growth Fund
A multi-million dollar fund was created to be used in conjunction with existing Indiana Economic Development Corporation (IEDC) incentives to compete for the expansion and attraction opportunities with companies that are engaged in technology-intensive, high value-added activities paying well above average wages.

Life Sciences R&D Growth Fund
Effective July 1, 2008, IEDC will provide grants to universities to support the recruitment and retention of world class scientists specializing in life sciences.

Patent Income Exemption
To spur additional patent activity, qualified utility and plant patents are exempt from taxation on certain income derived. Qualified taxpayers are eligible for an exemption of 50% of income for each of the first five years and decreases over the next five years to 10% in the tenth year. The total amount of exemptions claimed by a taxpayer may not exceed $5 million per year.

Headquarters Relocation Tax Credit
A tax credit equal to 50 percent of relocation costs for companies with revenue of at least $100 million and a minimum of 75 employees.

Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit
A tax credit of up to 15% (as determined by IEDC) of the qualified investment for the manufacture of alternative fuel vehicles. An applicant must compensate its employees at least 150% of the state's hourly minimum wage and agree to maintain operations for at least 10 years.

Single Sales Factor Apportionment
Indiana is phasing in a business-friendly, single factor business tax formula to encourage job creation and capital investment.

Telecommunications
Passage of the Telecommunication Reform Act in 2006 encourages new investment and competition in cable, telephone and internet services.

Source: Indiana Economic Development Corporation
 

Tax Credits

Economic Development for a Growing Economy Tax Credit (EDGE)
Program rewards companies creating new jobs and contributing to the growth of Indiana income.

Hoosier Business Investment Tax Credit (HBITC)
Program encourages capital investment in Indiana by providing a credit against a company’s Indiana tax liability.

Venture Capital Tax Credit (VCI)
Program improves access to capital for fast growing Indiana companies by providing individual and corporate investors an additional incentive to invest in early stage firms.

Industrial Recovery Tax Credit
Provides an incentive for companies to invest in facilities requiring significant rehabilitation or remodeling expense.

Source: Indiana Economic Development Corporation
 

Training Acceleration Grant
Get information